How Closely Is Ceo Compensation Tied to Performance? an Examination of the U.S. Restaurant Industry

Michael Dalbor, Seonghee Oak, Toni Rowe
2010 Journal of Hospitality Financial Management  
The purpose of this research is to assess the elasticity of CEO compensation in the U.S. restaurant industry. Using a sample of 30 restaurant firms for the years 1993 through 2006, we find that a 1% increase in current year firm return yields an increase of approximately .43% for salary, bonus and stock options, .20% for salary and bonus and 2.74% for bonus and options. Mergers do not appear to impact CEO compensation significantly. Our findings are within the range found by many previous researchers.
doi:10.1080/10913211.2010.10653891 fatcat:yhroj7crgzdmdkqpa4zxn76rsi